I may not be the sharpest knife in the drawer, but it struck me as funny when S&P issued a report today maintaining its "Hold" on IndyMac. Hold on what? "We are keeping our lowest available target price of $0.50," the report says, "but we do not believe investors should add to positions at this time due to the high level of uncertainty regarding the terms of any potential sale." Uh, no kidding.
BUT IT'S NOT ALL BAD
S&P is raisings its rating on KB Home. Good news for a home builder! Sort of. The rating is going to "Hold" from "Sell," which means if you ignored the earlier recommendation to sell your shares, well, don't sell them now. S&P says the stock has lost so much value it's now below a $15 price target. "We believe KBH has sufficient funds available, with $1.3 billion in cash, to meet its working capital and debt payments," the report says. "Despite the Los Angeles-based builder's above-average concentration of land lots in CA and other Sunbelt markets compared to peers, we think KBH will survive the housing downturn."
WHO MAY NOT SURVIVE?
Mark Mozilo was an executive at IndyMac, the now-failed bank formed in 1985 by his father, Countrywide co-founder Angelo Mozilo. Now both appear to be out of work.
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